Matchesfashion Gets £60M Injection From Apax Partners — Retail Bum

British retailer Matchesfashion has received a £60 million investment from parent company Apax Partners to turn around its business.

The part equity, part debt injection is the largest investment Matchesfashion has received from Apax since being acquired in 2017 in a $1 billion deal. It comes at a time when the company struggles with high acquisition costs, challenges predicting inventory and demand, and meeting profit targets. To make matters worse, high energy costs, fears of recession, and a decline in consumer spending are further adding to the company’s woes.

In 2022, the company’s EBITA loss increased to o £23.8 million, up from £17.2 million the year before.

Matchesfashion has sought to address its problems by bringing in fresh leadership. In July 2022, the company appointed ASOS’ former CEO Nick Beighton as its chief executive, the fourth person in the role in less than five years. Soon after, former Farfetch executives Stuart Hill and Dave Murray were appointed chief operating officer and financial officer, respectively.

While the company is dealing with a host of macroeconomic challenges, it is starting to see a path toward profitability, with order demand increasing by 15% year-on-year. The company is particularly benefitting from growth in the…